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Monday, June 01, 2009

This was my household's best month I can remember for growing our net worth. Since May 1st, we have increased our net worth by $16,200.

Our net take home pay is $8264 per month. How did our net worth go up so much? Well, it went up principally because:

* Property values for our three investment properties in lower Tennessee and Alabama have gone up. This is to be expected since mortgage rates bottomed out this past month, and I have noticed property values tend to be strong in and around summer months.

* A majority of our investments across our ROTH IRAs are in Gold, Silver and Soft Commodities. These sectors have been performing well.

* Over the past 17 months we have completed about $37k in repairs and upgrades to two of our three investment properties. We shouldn't have any other related expenditures for considerable time on our properties (fingers crossed). During May, no property repairs, only rent collected.

So, why do I say our net worth increased $16.2k but list only $4.2k on my site's header? Well, I changed the way I calculate our net worth. In the past, I would take credit for the full account balance of each of our regular 401Ks. Now, I'm discounting the face value of these by 18% to account for Federal taxes we would pay if we were of retirement age. Doing this now will prevent tax bill shock in retirement... Over the last three months we also modified our net worth calculations to discount our investment property values by full real estate broker fees. We shouldn't have any other changes to our net worth calculations going forward.

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